AUD/NZD jumps above hourly 200-MA

AUD/NZD trades above hourly 200-MA level of 1.0677 levels after the Aussie Q2 CPI number beat estimates.

Inflation differential favors Aussie

Better-than-expected RBA weighted median numbers and last week’s weaker-than-expected NZ inflation numbers have titled inflation differential in favor of AUD.

RBA August rate cut is still on the table, however, today’s data means the probability of RBA rate cut is slightly lower than RBNZ rate cut.

The cross thus clocked a high of 1.0724 post Aussie CPI release before trimming gains to trade just above the hourly 200-MA levels.

AUD/NZD Technical Levels

The immediate hurdle is noted at 1.0688 (hourly 100-MA), which if breached would open doors for a re-test of 1.0724 (post CPI high). On the other hand, a breakdown of support at 1.0677 (hourly 200-MA) would expose 1.06 levels.